Notes on Law

Chapter 18 Arrival under Stress and Shipwrecks Arrival under stress- the arrival of a vessel at the nearest and most convenient port which was decided upon determining that there is well-founded fear of seizure, privateers, or pirates or by reason of any accident of the sea disabling it to navigate Steps to undertake if arrival under stress is justified: a. the captain should determine during the voyage if there is well founded fear of seizure, privateers and other valid grounds b. the captain shall then assemble the officers c. the captain shall summon the persons interested in the cargo who may be present and who may attend but without right to vote d. the officers shall determine and agree if there is well founded reason after examining the circumstances; the captain shall have a deciding vote e. the agreement shall be drafted and the proper minutes shall be signed and entered in the log book; f. objections and protests shall likewise be entered in the minute...

Chapter 17 Collisions Collision- an impact or sudden contact of a moving body with an obstruction in its line of motion whether a. both bodies are in motion b. one is stationary and the other is in motion (allision) Zones in Collision: 1. First division- all the time up to the moment when the risk of collision may be said to have begun 2. Second division- time between the movement when the risk of collision begins and the moment when it has become practical certainty 3. Third Division- the time of the actual contact Error in extremis- time when the sail vessel was passing through the third zone that it changed its course to port in order to avoid the collision; sailing vessel is not responsible for the result Applicable Law: Liability for negligence in the absence of contract- Art 2176 NCC (quasi-delict) Liability of the shipowner, ship agent, captain or crew in collision is still governed by the Code of Commerce on Collision *contributory negligen...

Chapter 16 Averages Averages -extraordinary or accidental expenses which may be incurred during the voyage in order to preserve the vessel, the cargo or both -damages or deterioration which the vessel or its merchandise or both may suffer from its voyage 1. Simple or particular average - include all the expenses and damages caused to the vessel or her cargo which have not inured to the benefit and profit of all the persons interested in the vessel and cargo - borne by the owner of the goods that suffered the damage - res perit domino 2. General average - include all the damages and expenses which are deliberately caused in order to save the vessel, cargo, or both at the same time from real and known risk -Requisites: a. there must be a common danger b. for the common safety, part of the vessel or cargo or both is sacrificed deliberately c. from the expenses and damages caused follows a successful saving of the vessel and cargo d. expenses or dama...

Chapter 15 Loans on Bottomry and Respondentia Bottomry- a contract whereby the owner of the ship borrows for the use, equipment, and repair of the vessel for a definite term, and pledges the ship as security Respondentia- when goods are hypothecated as security for the loan, the payment of which is dependent upon maritime risks; usually in form of a bond Distinguished from simple loan: 1. Rate of interest -in bottomry or respondentia, it is not subject to Usury Law on account of the extraordinary risks -in simple loan, it must not exceed the ceiling fixed by Usury Law 2. Marine risk -bottomry or respondentia, existence of a marine risk must be duly established -in simple loan, needless to have such risks involved 3. Execution of contract -in bottomry or respondentia, executed in accordance with the form and manner required in the Code of Commerce -in simple loan, formal requisites regarding contracts in general would apply 4. Record -in bot...

Chapter 14 Charter Parties *Carta Partita- divided document Charter Party - a contract whereby an entire ship, or some principal part thereof is let by the owner to a merchant or other person for a specified time or use for the conveyance of goods, in consideration of the payment of freight; merchant lease; may involve transportation of persons from one port to another Kinds of Charter Parties: 1. Bareboat or Demise Charter - shipowner leases to the charterer the whole vessel, transferring to the latter the entire command, possession and consequent control over the vessel’s navigation - charterer takes over the ship, lock, stock, and barrel, thus becomes owner pro hac vice of the vessel, subject to any liability for damages arising from negligence - charterer assumes to a large extent, the customary rights and liabilities of the shipowner in relation to third persons who may have dealt with him or with the vessel; liable for the expenses of the voyage includ...

Chapter 13 Persons who take Part in Maritime Commerce Shipowner- the person who is primarily liable for damages sustained in the operation of the vessel Naviero- person who is liable; may include shipowner, ship agent, charterer who is considered owner pro hac vice *owner of the vessel is civilly liable for the acts of the captain; he can only escape from this civil liability by abandoning his property in the ship and any freight that he may have earned of the voyage Ship agent- the person entrusted with provisioning of the vessel, or who represents her in the port in which she happens to be; jointly and severally liable with the owner; must have the capacity to trade; must be recorded in the merchant’s registry of the province *shipowner and ship agent are liable in certain cases even if the captain has exceeded his authority if the proceeds of an obligation redounded to the benefit of the vessel *while negligence of the employee must be established, there ...